Advanced Television

Intelsat/Telenor lose Canal+ business

October 30, 2020

With SES taking a larger slice of Canal+ capacity requirements, it is inevitable that there had to be a loser. That satellite operator is the Intelsat/Telenor position at 1-degree West.

Canal+ owned-M7 group will consolidate its Eastern European coverage on SES at 23.5 degrees East cutting out Intelsat/Telenor at 1 West. SES is thus gaining market share. While the agreement is worth an extra €230 million to backlog at SES, it also secures Canal+ as a key ‘anchor’ tenant on SES beyond 2030.

Canal+ will use less capacity on the high-priced 19.2 degrees East position but use more transponders at 22 degrees West and 23.5 degrees East.

A note to clients from investment bank Exane/BNPP said: “We believe this is likely to result in a slight overall decline in total SES revenues from [Canal+]. But this looks consistent with current Video revenue expectations.”

The bank continues: “Canal Plus in renewing its long-term commitment somewhat reduces the long term risk for SES Video at a time when it is likely to benefit from Video capex savings. It comes on the back of Sky Italia recently renewing with Eutelsat. This should result in a resilient Free Cashflow generation. SES reports its Q3 numbers on November 5th. We rate the stock +.”

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